CEO Balan Nair stated, "We are entering an exciting new phase for
Liberty Latin America having completed the split-off from Liberty
Global. We believe we have a significant opportunity to grow through our
unique asset base, encompassing a comprehensive range of
telecommunications services from our extensive subsea network and B2B
operations to our high-speed consumer mobile and fixed networks. Our
assets are well-positioned across a region that remains underpenetrated
and underserved by high-speed telecommunications products."

"To drive this growth, we are committed to building the best networks
and delivering innovative products to enhance the experience for our
customers. In 2017, we upgraded or newly built approximately 465,000
homes and there is more room to grow with a fifth of our network
footprint at Cable & Wireless still served by low-speed copper
connections and many homes in our markets yet to be passed. We also
accelerated the roll-out of our WiFi Connect Boxes during the year, with
40% of our customers in Chile now benefiting from a market-leading
in-home broadband connectivity experience."

"In addition to the organic growth potential in our existing markets, we
also see a significant consolidation opportunity across a fragmented
region where we can leverage our scale to drive synergies and improve
operating performance. Our recently announced acquisition in Costa Rica
is a clear example of the high quality assets available in the region
and the potential for us to add value through the application of our
operating model."

"Looking to 2018, it will be a challenging year as we work towards
recovery in several of our Caribbean markets following the hurricanes,
however, we are on-track to getting our networks and customers back
on-line. Combined with strong ongoing performance in Chile and momentum
building at Cable & Wireless, we are establishing an exciting platform
for sustainable growth."

Over 450,000 subscribers back on-line as of February 8, 2018; 530
miles of cable restored

Operations turned OCF positive in December 2017

Successfully negotiated leverage maintenance covenant holiday for
one year

Liberty Latin America 2018 Financial Guidance
[2]

In 2018, we expect:

Greater than $1.4 billion of OCF; and

P&E additions as a percentage of revenue between 19% and 21%.

Liberty Latin America

Q4 2017

YoY
Growth/(Decline)*

FY 2017

YoY
Growth/(Decline)*

Subscribers

Organic RGU net additions

(31,200

)

N.M.

65,900

(30

%)

Financial (in USD millions)

Revenue

$

850

(10

%)

$

3,590

(2

%)

OCF

$

295

(23

%)

$

1,367

(6

%)

Property & equipment additions

$

(273

)

$

(777

)

As a percentage of revenue

32

%

22

%

Operating loss

$

(244

)

N.M.

$

(148

)

N.M.

Adjusted FCF
[3]

$

(6

)

N.M.

$

(92

)

N.M.

Cash provided by operating activities

$

181

$

574

Cash used by investing activities

$

(186

)

$

(640

)

Cash provided by financing activities

$

5

$

42

N.M. – Not Meaningful.

* Revenue and OCF YoY growth rates are on a rebased basis(4).

Definitions for OCF and Adjusted FCF were changed effective December 31,
2017. All prior year amounts reflect these new definitions.

Under our new definition we are now including charges from Liberty
Global in OCF. During 2017 and 2016, these charges were $12.0 million
and $8.5 million, respectively. We will continue to incur charges from
Liberty Global post split-off under a framework services agreement.

With respect to Adjusted FCF, under our new definition we are
deducting distributions to non-controlling interests, which are
reflected as a component of cash provided by financing activities.
During 2017 and 2016, these distributions were $45.9 million and $61.9
million, respectively.

Broadband additions were driven by network upgrades, leading to
gains of 15,000 RGUs in Jamaica. In Panama, we recorded an overall
decline of 1,000 subscribers as higher sales of Mast3r bundles
were offset by churn on our legacy products.

Excluding DTH losses of 4,000 in Panama, our fixed video RGUs grew
by 7,000 across C&W's markets. This performance represented an
improvement compared to prior quarters as we drove increased
uptake of our bundle propositions and promoted Flow Sports - the
leading sports channel in the English speaking Caribbean.

Mobile: subscribers declined by
42,000 in Q4 as continued growth in Jamaica (23,000 additions) was
more than offset by declines in Panama (61,000 decline) and the
Bahamas (11,000 decline). The decline in Panama reflects our
ongoing focus on higher ARPU customers and competitive intensity
in the market, while increased competition continued to impact the
Bahamas.

Mobile: We added 9,000 postpaid
subscribers in Q4 as we continued to penetrate our fixed
subscriber base with our mobile product.

Puerto Rico: Our subscriber base fell by
65,000 in Q4. This figure represents the net number of subscribers
that disconnected from our services during the quarter.

Revenue Highlights

C&W was acquired on May 16, 2016, and accordingly, is included in our
financial results under our U.S. GAAP accounting policies since the
acquisition date. The following table presents (i) revenue of each of
our reportable segments for the comparative periods and (ii) the
percentage change from period-to-period on both a reported and rebased
basis:

Three months ended

Increase/(decrease)

Year ended

Increase/(decrease)

December 31,

December 31,

2017

2016

%

Rebased %

2017

2016

%

Rebased %

in millions, except % amounts

C&W

$

584.9

$

590.7

(1.0

)

(2.6

)

$

2,322.1

$

1,444.8

60.7

(1.3

)

Chile

250.3

227.6

10.0

4.7

952.9

859.5

10.9

6.4

Puerto Rico

16.9

105.2

(83.9

)

(83.9

)

320.5

420.8

(23.8

)

(23.8

)

Intersegment eliminations

(2.0

)

(0.6

)

N.M.

N.M.

(5.5

)

(1.3

)

N.M.

N.M.

Total

$

850.1

$

922.9

(7.9

)

(9.9

)

$

3,590.0

$

2,723.8

31.8

(2.1

)

N.M. – Not Meaningful.

Reported revenue for the three and twelve months ended December 31,
2017 declined by 8% and grew by 32%, respectively.

The Q4 reported decline reflects the negative impact of Hurricanes
Irma and Maria, partially offset by beneficial exchange rate
movements, organic revenue growth at VTR and inclusion of certain
previously carved-out entities at C&W. The 2017 reported growth
was primarily driven by the acquisition of C&W in the second
quarter of 2016.

In September 2017, Hurricanes Irma and Maria impacted a number of our
markets in the Caribbean. During the three months ended December 31,
2017, the hurricanes negatively impacted Liberty Puerto Rico’s and
C&W's revenue by an estimated $90 million and $7 million,
respectively. For FY 2017, the effects of the hurricanes negatively
impacted Liberty Puerto Rico’s and C&W's revenue by an estimated $109
million and $10 million, respectively.

From a rebased perspective, revenue declined by 10% and 2% for the
three and twelve months ended December 31, 2017, respectively, driven
by the impact of Hurricanes Irma and Maria partially offset by rebased
growth in Chile.

Q4 2017 Rebased Revenue Growth - Segment Highlights

C&W: Rebased revenue declined 3%
overall.

Lower revenue was driven by (i) a decline in Bahamas' mobile
performance where we continue to be impacted by the entry of a new
mobile competitor, (ii) reduced fixed-line revenue in Caribbean
markets impacted by the hurricanes and lower carrier revenue in
Jamaica, and (iii) a fall in low margin project-related B2B
revenue in Panama compared to a very strong performance in Q4
2016. This decline was partly offset by (a) continued growth in
Jamaica's mobile revenue, (b) increased penetration of high-speed
fixed services, particularly in Panama and Jamaica and (c) growth
in our wholesale capacity business.

Chile: Rebased revenue growth of 5% was
primarily related to increases in (i) residential cable subscription
revenue, mainly from higher ARPU per RGU and an increase in the
average number of subscribers, (ii) mobile subscription revenue,
driven by subscriber growth and (iii) B2B subscription revenue due to
growth in SOHO RGUs.

In 2018, we anticipate there will be a continued adverse impact on
our financial performance as we rebuild our business, however we
are making good progress reconnecting our customers, with over
450,000 RGUs back online as of February 8, 2018.

Operating Income (Loss)

Operating income (loss) was ($244 million) and $141 million in Q4 2017
and Q4 2016, respectively, and ($148 million) and $319 million for the
year ended December 31, 2017 and 2016, respectively.

The FY 2017 decrease was primarily driven by increases in impairments
and depreciation and amortization, which were partially offset by
higher OCF as further described below. During 2017, we recorded $660
million of impairments, primarily resulting from the hurricanes and
our annual goodwill testing at C&W. The increase in depreciation and
amortization was primarily driven by the acquisition of C&W.

Operating Cash Flow Highlights

The following table presents (i) OCF of each of our reportable segments
for the comparative periods and (ii) the percentage change from period
to period on both a reported and rebased basis:

Three months ended

Increase/(decrease)

Year ended

Increase/(decrease)

December 31,

December 31,

2017

2016

%

Rebased %

2017

2016

%

Rebased %

in millions, except % amounts

C&W

$

215.2

$

226.4

(4.9

)

(6.2

)

$

876.3

$

541.9

61.7

(3.8

)

Chile

101.4

94.3

7.5

2.4

383.3

339.3

13.0

8.3

Puerto Rico

(12.1

)

58.9

N.M.

N.M.

132.6

211.8

(37.4

)

(37.4

)

Corporate and other

(9.7

)

(5.2

)

86.5

N.M.

(25.1

)

(17.4

)

44.3

N.M.

Total

$

294.8

$

374.4

(21.3

)

(22.9

)

$

1,367.1

$

1,075.6

27.1

(6.3

)

OCF Margin

34.7

%

40.6

%

38.1

%

39.5

%

N.M. – Not Meaningful.

Reported OCF for the three and twelve months ended December 31, 2017
declined by 21% and grew by 27%, respectively.

The three month movement was primarily due to the impacts of
Hurricanes Irma and Maria, while the twelve month change was
driven by the C&W acquisition.

In September 2017, Hurricanes Irma and Maria impacted a number of our
markets in the Caribbean. During the three months ended December 31,
2017, the effects of the hurricanes negatively impacted Liberty Puerto
Rico’s and C&W's OCF by an estimated $65 million and $8 million,
respectively. In FY 2017, the effects of the hurricanes negatively
impacted Liberty Puerto Rico’s and C&W's OCF by an estimated $80
million and $17 million, respectively.

The Q4 and FY 2017 growth rates were negatively impacted by an $8
million and $13 million reversal in Q4 and FY 2016, respectively, of a
previously-recorded provision and related indemnification asset in
connection with a favorable ruling on an outstanding legal case in
Puerto Rico.

From a rebased perspective, including the aforementioned negative
impacts from Hurricanes Irma and Maria, OCF declined by 23% and 6% for
the three and twelve months ended December 31, 2017.

As previously identified, the FY 2017 rebased growth rate was
negatively impacted by the C&W OCF result in Q1 2016, which was
not comparable to preceding and subsequent quarters.

Q4 2017 Rebased OCF Growth - Segment Highlights

C&W: Rebased OCF decline of 6% was
driven by (i) the aforementioned revenue drivers, (ii) negative
impacts of Hurricanes Irma and Maria and (iii) negative impacts
totaling $9 million for the reassessment of certain operating accruals
and a provision for a non-cancellable lease. These factors were
partially offset by (a) improved margin mix primarily associated with
reduced low margin project-related B2B revenue, and (b) favorable
impact of a reduction in our bonus accrual.

Puerto Rico: Rebased OCF decline was
driven by the aforementioned negative impacts of Hurricanes Irma and
Maria, and the legal ruling benefit in the prior-year period.

Effective January 1, 2018, we will adopt a new accounting standard with
respect to certain defined benefit pension plans. Specifically, certain
components of our net periodic pension benefit will be reclassified to
non-operating income and, as such, will no longer be included in OCF.
During the year ended December 31, 2017, $14.5 million of such credits
were included in OCF that will be reclassified to non-operating income
(expense) upon the adoption of this new accounting standard.

Net Loss Attributable to Shareholders

Net losses attributable to shareholders were $401 million and $107
million for the three months ended December 31, 2017 and 2016,
respectively, and $778 million and $432 million for the year ended
December 31, 2017 and 2016, respectively.

Leverage and Liquidity (at December 31, 2017)

Total capital leases and principal amount of debt:
$6,398 million.

Leverage ratios: Consolidated gross and
net leverage ratios of 5.5x and 5.1x, respectively. These ratios were
calculated on a latest quarter annualized ("LQA") basis and therefore
impacted by the $73 million negative impact from Hurricanes Irma and
Maria in Q4. This impact increased gross and net leverage by
approximately 1.1x and 1.0x, respectively.

Average debt tenor
[6]
: 6.1
years, with approximately 88% not due until 2022 or beyond.

Borrowing costs: Blended, fully-swapped
borrowing cost of our debt was 6.3%. In February 2018, we entered into
a new $1,875 million term loan at C&W, which was used to refinance the
existing C&W $1,825 million term loan. The refinancing reduced our
margin by 25 basis points to LIBOR + 3.25% and extended the tenor by
one year to January 2026. The incremental loan proceeds were used to
repay drawings under the C&W revolving credit facility.

Liquidity: Approximately $1.5 billion,
including $530 million of cash and $938 million of aggregate unused
borrowing capacity
[7]
under our credit facilities.

Forward-Looking Statements and Disclaimer

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements with respect to our strategies, future growth
prospects and opportunities; our expectations with respect to
subscribers, revenue, ARPU per RGU, OCF and Adjusted FCF; statements
regarding the impact of Hurricanes Irma and Maria on our operations in
the Caribbean, our plans regarding the markets impacted by the
hurricanes, the time it will take to restore services in the markets
impacted by the hurricanes and the amount and timing of insurance
proceeds; statements regarding the development, enhancement and
expansion of, our superior networks and innovative and advanced products
and services; plans and expectations relating to new build and network
extension opportunities; opportunities with respect to our mobile, B2B
and subsea cable businesses, our estimates of future P&E additions as a
percentage of revenue; the strength of our balance sheet and tenor of
our debt; the potential value added by our acquisition of a Costa Rican
cable operator; and other information and statements that are not
historical fact. These forward-looking statements involve certain risks
and uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These risks and
uncertainties include events that are outside of our control, such as
hurricanes and other natural disasters, the continued use by subscribers
and potential subscribers of our services and their willingness to
upgrade to our more advanced offerings; our ability to meet challenges
from competition, to manage rapid technological change or to maintain or
increase rates to our subscribers or to pass through increased costs to
our subscribers; the effects of changes in laws or regulation; general
economic factors; our ability to obtain regulatory approval and satisfy
regulatory conditions associated with acquisitions and dispositions; our
ability to successfully acquire and integrate new businesses and realize
anticipated efficiencies from acquired businesses; the availability of
attractive programming for our video services and the costs associated
with such programming; our ability to achieve forecasted financial and
operating targets; the outcome of any pending or threatened litigation;
the ability of our operating companies to access cash of their
respective subsidiaries; the impact of our operating companies' future
financial performance, or market conditions generally, on the
availability, terms and deployment of capital; fluctuations in currency
exchange and interest rates; the ability of suppliers and vendors
(including our third-party wireless network provider under our MVNO
arrangement) to timely deliver quality products, equipment, software,
services and access; our ability to adequately forecast and plan future
network requirements including the costs and benefits associated with
network expansions; and other factors detailed from time to time in our
filings with the Securities and Exchange Commission, including our most
recently filed Form 10-K. These forward-looking statements speak only as
of the date of this release. We expressly disclaim any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in our
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.

About Liberty Latin America

Liberty Latin America is a leading telecommunications company operating
in over 20 countries across Latin America and the Caribbean under the
consumer brands VTR, Flow, Liberty, Màs Móvil and BTC. The
communications and entertainment services that we offer to our
residential and business customers in the region include combinations of
services comprised of digital video, broadband internet, telephony and
mobile services. Our business products and services include
enterprise-grade connectivity, data center, hosting and managed
solutions, as well as information technology solutions with customers
ranging from small and medium enterprises to international companies and
governmental agencies. In addition, Liberty Latin America operates a
sub-sea and terrestrial fiber optic cable network that connects over 40
markets in the region.

Liberty Latin America has three separate classes of common shares, which
are traded on the NASDAQ Global Select Market under the symbols "LILA"
(Class A) and "LILAK" (Class C), and on the OTC link under the symbol
"LILAB" (Class B).

[The indicated growth rates are rebased for acquisitions and
FX. Please see Revenue and Operating Cash Flow for
information on rebased growth.]

[5.]

[Please see Footnotes for Operating Data and Subscriber
Variance Tables for the definition of RGUs. Organic figures
exclude RGUs of acquired entities at the date of acquisition and
other nonorganic adjustments, but include the impact of changes in
RGUs from the date of acquisition. All subscriber/RGU additions or
losses refer to net organic changes, unless otherwise noted.]

[Our aggregate unused borrowing capacity of $938 million
represents the maximum undrawn commitments under our subsidiaries'
applicable facilities without regard to covenant compliance
calculations or other conditions precedent to borrowing. Upon
completion of the relevant December 31, 2017 compliance reporting
requirements for our credit facilities, and assuming no further
changes from quarter-end borrowing levels, we anticipate the full
amount of unused borrowing capacity will continue to be available
to be borrowed under each of the respective subsidiary facilities.
For information regarding limitations on C&W's ability to access
this cash, see the discussion under "Liquidity and Capital
Resources" in our Form 10-K.]

Balance Sheets, Statements of Operations and Statements of Cash Flows

The consolidated balance sheets, statements of operations and statements
of cash flows of Liberty Latin America are included in our Annual Report
on Form 10-K.

Rebase Information

For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2017, we have adjusted our
historical revenue and OCF for the three and twelve months ended
December 31, 2016 to (i) include the pre-acquisition revenue and OCF of
certain entities acquired during 2016 and 2017 in our rebased amounts
for the three and twelve months ended December 31, 2016 to the same
extent that the revenue and OCF of such entities are included in our
results for the three and twelve months ended December 31, 2017 and (ii)
reflect the translation of our rebased amounts for the three and twelve
months ended December 31, 2016 at the applicable average foreign
currency exchange rates that were used to translate our results for the
three and twelve months ended December 31, 2017. We have included the
Carve-out entities in the determination of our rebased revenue and OCF
for the three months ended December 31, 2016. We have included C&W and
the Carve-out entities in whole or in part in the determination of our
rebased revenue and OCF for the twelve months ended December 31, 2016.
We have reflected the revenue and OCF of the acquired entities in our
2016 rebased amounts based on what we believe to be the most reliable
information that is currently available to us (generally pre-acquisition
financial statements), as adjusted for the estimated effects of (a) any
significant differences between U.S. GAAP and local generally accepted
accounting principles, (b) any significant effects of acquisition
accounting adjustments, (c) any significant differences between our
accounting policies and those of the acquired entities and (d) other
items we deem appropriate. We do not adjust pre-acquisition periods to
eliminate nonrecurring items or to give retroactive effect to any
changes in estimates that might be implemented during post-acquisition
periods. As we did not own or operate the acquired businesses during the
pre-acquisition periods, no assurance can be given that we have
identified all adjustments necessary to present the revenue and OCF of
these entities on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical results or
that the pre-acquisition financial statements we have relied upon do not
contain undetected errors. The adjustments reflected in our rebased
amounts have not been prepared with a view towards complying with
Article 11 of Regulation S-X. In addition, the rebased growth
percentages are not necessarily indicative of the revenue and OCF that
would have occurred if these transactions had occurred on the dates
assumed for purposes of calculating our rebased amounts or the revenue
and OCF that will occur in the future. The rebased growth percentages
have been presented as a basis for assessing growth rates on a
comparable basis, and are not presented as a measure of our pro forma
financial performance. The following table provides adjustments made to
the 2016 amounts to derive our rebased growth rates:

Revenue

OCF

Three months endedDecember 31,

Year endedDecember 31,

Three months endedDecember 31,

Year endedDecember 31,

2016

2016

2016

2016

in millions

Acquisitions

$

8.7

$

917.2

$

3.1

$

373.9

Foreign Currency

12.3

24.4

4.7

9.6

Total

$

21.0

$

941.6

$

7.8

$

383.5

OCF Definition and Reconciliation

As used herein, OCF has the same meaning as the term "Adjusted OIBDA"
that is referenced in our Form 10-K. OCF is the primary measure used by
our chief operating decision maker to evaluate segment operating
performance. OCF is also a key factor that is used by our internal
decision makers to (i) determine how to allocate resources to segments
and (ii) evaluate the effectiveness of our management for purposes of
annual and other incentive compensation plans. As we use the term, OCF
is defined as operating income before depreciation and amortization,
share-based compensation, provisions and provision releases related to
significant litigation and impairment, restructuring and other operating
items. Other operating items include (i) gains and losses on the
disposition of long-lived assets, (ii) third-party costs directly
associated with successful and unsuccessful acquisitions and
dispositions, including legal, advisory and due diligence fees, as
applicable, and (iii) other acquisition-related items, such as gains and
losses on the settlement of contingent consideration. Our internal
decision makers believe OCF is a meaningful measure because it
represents a transparent view of our recurring operating performance
that is unaffected by our capital structure and allows management to (i)
readily view operating trends, (ii) perform analytical comparisons and
benchmarking between segments and (iii) identify strategies to improve
operating performance in the different countries in which we
operate. Effective December 31, 2017, we include certain charges
previously allocated to us by Liberty Global in the calculation of OCF.
These charges represent fees for certain services provided to us and
totaled $12.0 million and $8.5 million for the years ended December 31,
2017 and 2016, respectively. We believe changing the definition of OCF
to include these charges is meaningful given they represent operating
costs we will continue to incur subsequent to the split-off as a
standalone public company. This change has been given effect for all
periods presented. We believe our OCF measure is useful to investors
because it is one of the bases for comparing our performance with the
performance of other companies in the same or similar industries,
although our measure may not be directly comparable to similar measures
used by other public companies. OCF should be viewed as a measure of
operating performance that is a supplement to, and not a substitute for,
operating income, net earnings or loss, cash flow from operating
activities and other U.S. GAAP measures of income or cash flows. A
reconciliation of our operating income (loss) to total segment OCF is
presented in the following table:

The following table details the U.S. dollar equivalent balances of the
outstanding principal amount of our debt, capital lease obligations and
cash and cash equivalents at December 31, 2017:

Capital

Debt & Capital

Cash

Lease

Lease

and Cash

Debt

Obligations

Obligations

Equivalents

in millions

Liberty Latin America
[1]

$

—

$

—

$

—

$

133.4

C&W

3,900.6

16.7

3,917.3

266.1

VTR

1,497.4

0.8

1,498.2

89.4

Liberty Puerto Rico

982.5

—

982.5

41.0

Total

$

6,380.5

$

17.5

$

6,398.0

$

529.9

[1.]

[Represents the amount held by Liberty Latin America on a
standalone basis plus the aggregate amount held by subsidiaries of
Liberty Latin America that are outside of our borrowing groups.
Subsidiaries of Liberty Latin America that are outside our borrowing
groups rely on funds provided by our borrowing groups to satisfy
their liquidity needs.]

Property and Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment
additions for the indicated periods and reconciles those additions to
the capital expenditures that are presented in the consolidated
statements of cash flows included in our Form 10-K.

Three months ended

Year ended

December 31,

December 31,

2017

2016

2017

2016

in millions, except % amounts

Customer premises equipment

$

29.3

$

27.6

$

143.5

$

137.7

New Build & Upgrade

57.5

9.2

96.9

44.0

Capacity

7.1

7.1

32.1

37.6

Baseline

14.8

13.7

41.1

44.5

Product & Enablers

13.3

7.9

31.3

21.8

C&W P&E Additions

151.2

137.7

431.8

282.6

Property and equipment additions

273.2

203.2

776.7

568.2

Assets acquired under capital-related vendor financing arrangements

(7.7

)

(11.8

)

(54.9

)

(45.5

)

Assets acquired under capital leases

(0.5

)

(2.4

)

(4.2

)

(7.4

)

Changes in current liabilities related to capital expenditures

(73.2

)

(41.1

)

(78.3

)

(24.9

)

Capital expenditures
[1]

$

191.8

$

147.9

$

639.3

$

490.4

Property and equipment additions as % of revenue

32.1

%

22.0

%

21.6

%

20.9

%

[1.]

[The capital expenditures that we report in our consolidated
statements of cash flows do not include amounts that are financed
under capital-related vendor financing or capital lease
arrangements. Instead, these amounts are reflected as non-cash
additions to our property and equipment when the underlying assets
are delivered and as repayments of debt when the related principal
is repaid.]

Adjusted Free Cash Flow Definition and Reconciliation

We define Adjusted FCF as net cash provided by our operating activities,
plus (i) cash payments for third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions and (ii)
expenses financed by an intermediary, less (a) capital expenditures, (b)
distributions to noncontrolling interest owners, (c) principal payments
on amounts financed by vendors and intermediaries and (d) principal
payments on capital leases. We changed the way we define Adjusted FCF
effective December 31, 2017 to deduct distributions to noncontrolling
interest owners. This change was given effect for all periods presented.
We believe that our presentation of Adjusted FCF provides useful
information to our investors because this measure can be used to gauge
our ability to service debt and fund new investment opportunities.
Adjusted FCF should not be understood to represent our ability to fund
discretionary amounts, as we have various mandatory and contractual
obligations, including debt repayments, which are not deducted to arrive
at this amount. Investors should view adjusted free cash flow as a
supplement to, and not a substitute for, U.S. GAAP measures of liquidity
included in our consolidated statements of cash flows. The following
table provides the reconciliation of our net cash provided by operating
activities to Adjusted FCF for the indicated periods:

Three months ended

Year ended

December 31,

December 31,

2017

2016

2017

2016

in millions

Net cash provided by operating activities

$

180.8

$

240.7

$

573.9

$

468.2

Cash payments for direct acquisition and disposition costs

1.4

23.3

4.2

86.0

Expenses financed by an intermediary
[1]

25.8

1.9

82.7

3.0

Capital expenditures

(191.8

)

(147.9

)

(639.3

)

(490.4

)

Distributions to noncontrolling interest owners

(12.6

)

(6.3

)

(45.9

)

(61.9

)

Principal payments on amounts financed by vendors and intermediaries

(7.3

)

—

(59.4

)

—

Principal payments on capital leases

(1.9

)

(1.7

)

(8.6

)

(5.2

)

Adjusted FCF

$

(5.6

)

$

110.0

$

(92.4

)

$

(0.3

)

[1.]

[For purposes of our consolidated statements of cash flows,
expenses financed by an intermediary are treated as hypothetical
operating cash outflows and hypothetical financing cash inflows when
the expenses are incurred. When we pay the financing intermediary,
we record financing cash outflows in our consolidated statements of
cash flows. For purposes of our Adjusted Free Cash Flow definition,
we add back the hypothetical operating cash outflow when these
financed expenses are incurred and deduct the financing cash
outflows when we pay the financing intermediary.]

ARPU per Customer Relationship

The following table provides ARPU per customer relationship for the
indicated periods:

Three months ended December 31,

FX-Neutral
[1]

2017

2016

% Change

% Change

Liberty Latin America
[2,3]

$

49.87

$

47.97

4.0

%

0.8

%

C&W
[2]

$

44.80

$

43.74

2.4

%

2.3

%

Chile

CLP

33,659

CLP

33,953

(0.9

%)

(0.9

%)

[1.]

[The FX-neutral change represents the percentage change on a
year-over-year basis adjusted for FX impacts and is calculated by
adjusting the prior-year figures to reflect translation at the
foreign currency rates used to translate the current year amounts.]

[2.]

[As a part of our ongoing effort to conform C&W's subscriber
counting policies to our policies, we have reflected nonorganic
reductions totaling 223,000 to C&W's customer count during the
twelve months ended December 31, 2017. In order to provide a more
meaningful comparison of ARPU, we have reflected all of these
nonorganic reductions in the customer figures used to calculate ARPU
for the three months ended December 31, 2017 and 2016.]

[3.]

[Due to the uncertainties surrounding our Q4 2017 customer count
in Puerto Rico as a result of the hurricanes, we have omitted Puerto
Rico ARPU for the three months ended December 31, 2017 and December
31, 2016. For the three months ended December 31, 2016, Puerto Rico
ARPU was $78.36. In order to provide a more meaningful comparison,
Puerto Rico ARPU has been omitted from consolidated Liberty Latin
America ARPU for the three months ended December 31, 2017 and 2016.
Including Puerto Rico, Liberty Latin America ARPU was $52.51 for the
three months ended December 31, 2016.]

Mobile ARPU

The following tables provide ARPU per mobile subscriber for the
indicated periods:

[During September 2017, Hurricanes Irma and Maria caused
significant damage to our operations in Puerto Rico, as well as
certain geographies within C&W, including the British Virgin
Islands, Dominica and Anguilla, and to a lesser extent, Turks &
Caicos, the Bahamas, Antigua and other smaller markets, resulting in
disruptions to our telecommunications services within these islands.
With the exception of the Bahamas, all of these C&W markets are
included in the “Other” category in the accompanying table. For
Puerto Rico, British Virgin Islands, Dominica and Anguilla, where we
are still in the process of assessing the impacts of the hurricanes
on our networks and subscriber counts, (i) the subscriber levels
reflect the pre-hurricane RGU (as defined below) counts as of August
31, 2017, adjusted for net known disconnects through December 31,
2017 and (ii) the homes passed levels reflect the pre-hurricane
homes passed counts as of August 31, 2017, adjusted for an estimated
30,000 homes in Puerto Rico that were destroyed in geographic areas
we currently do not anticipate rebuilding our network. As of
December 31, 2017, we have been able to restore service to
approximately 340,000 RGUs of our total 738,500 RGUs at Liberty
Puerto Rico. Additionally, services to most of our fixed-line
customers have not yet been restored in the British Virgin Islands,
Dominica and Anguilla. While mobile services have been largely
restored in these markets, we are still in the process of completing
the restoration of our mobile network infrastructure.]

Glossary

ARPU – Average revenue per unit refers to the average monthly
subscription revenue (subscription revenue excludes interconnect, mobile
handset sales, late fees and installation fees) per average customer
relationship or mobile subscriber, as applicable. ARPU per average
customer relationship is calculated by dividing the average monthly
subscription revenue from residential cable and SOHO services by the
average of the opening and closing balances for customer relationships
for the period. ARPU per average mobile subscriber is calculated by
dividing residential mobile and SOHO revenue for the indicated period by
the average of the opening and closing balances for mobile subscribers
for the period. Unless otherwise indicated, ARPU per customer
relationship or mobile subscriber is not adjusted for currency impacts.
ARPU per RGU refers to average monthly revenue per average RGU, which is
calculated by dividing the average monthly subscription revenue from
residential and SOHO services for the indicated period, by the average
of the opening and closing balances of the applicable RGUs for the
period. Unless otherwise noted, ARPU in this release is considered to be
ARPU per average customer relationship or mobile subscriber, as
applicable. Customer relationships, mobile subscribers and RGUs of
entities acquired during the period are normalized.

B2B – Business-to-business subscription revenue represents
revenue from services to certain SOHO subscribers (fixed and mobile).
B2B non-subscription revenue includes business broadband internet,
video, telephony, mobile and data services offered to medium to large
enterprises and, on a wholesale basis, to other operators.

Basic Video Subscriber – A home, residential multiple dwelling
unit or commercial unit that receives our video service over our
broadband network either via an analog video signal or via a digital
video signal without subscribing to any recurring monthly service that
requires the use of encryption-enabling technology. Encryption-enabling
technology includes smart cards, or other integrated or virtual
technologies that we use to provide our enhanced service offerings. With
the exception of RGUs that we count on an equivalent billing unit
("EBU') basis, we count RGUs on a unique premises basis. In other words,
a subscriber with multiple outlets in one premises is counted as one RGU
and a subscriber with two homes and a subscription to our video service
at each home is counted as two RGUs. We exclude DTH subscribers (as
defined below) from basic video subscribers.

Enhanced Video Subscriber – A home, residential multiple dwelling
unit or commercial unit that receives our video service over our
broadband network or through a partner network via a digital video
signal while subscribing to any recurring monthly service that requires
the use of encryption-enabling technology. Enhanced video subscribers
that are not counted on an EBU basis are counted on a unique premises
basis. For example, a subscriber with one or more set-top boxes that
receives our video service in one premises is generally counted as just
one subscriber. An enhanced video subscriber is not counted as a basic
video subscriber. As we migrate customers from basic to enhanced video
services, we report a decrease in our basic video subscribers equal to
the increase in our enhanced video subscribers.

Fixed-line Customer Relationships – The number of customers who
receive at least one of our video, internet or telephony services that
we count as RGUs, without regard to which or to how many services they
subscribe. To the extent that RGU counts include EBU adjustments, we
reflect corresponding adjustments to our customer relationship counts.
For further information regarding our EBU calculation, see Additional
General Notes below. Fixed-line customer relationships generally are
counted on a unique premises basis. Accordingly, if an individual
receives our services in two premises (e.g., a primary home and a
vacation home), that individual generally will count as two customer
relationships. We exclude mobile-only customers from customer
relationships.

Fully-swapped Borrowing Cost – Represents the weighted average
interest rate on our aggregate variable- and fixed-rate indebtedness
(excluding capital leases and including vendor financing obligations),
including the effects of derivative instruments, original issue premiums
or discounts and commitment fees, but excluding the impact of financing
costs.

Homes Passed – Homes, residential multiple dwelling units or
commercial units that can be connected to our networks without
materially extending the distribution plant, except for DTH homes.
Certain of our homes passed counts are based on census data that can
change based on either revisions to the data or from new census results.
We do not count homes passed for DTH.

Internet (Broadband) Subscriber – A home, residential multiple
dwelling unit or commercial unit that receives internet services over
our networks, or that we service through a partner network. Our internet
subscribers do not include customers that receive services from dial-up
connections.

Mobile Subscribers – Our mobile subscriber count represents the
number of active subscriber identification module (“SIM”) cards in
service rather than services provided. For example, if a mobile
subscriber has both a data and voice plan on a smartphone this would
equate to one mobile subscriber. Alternatively, a subscriber who has a
voice and data plan for a mobile handset and a data plan for a laptop
(via a dongle) would be counted as two mobile subscribers. Customers who
do not pay a recurring monthly fee are excluded from our mobile
telephony subscriber counts after periods of inactivity ranging from 30
to 60 days, based on industry standards within the respective country.
In a number of countries, our mobile subscribers receive mobile services
pursuant to prepaid contracts.

Net Leverage – Our gross and net debt ratios are defined as total
debt and net debt to annualized OCF of the latest quarter. Net debt is
defined as total debt less cash and cash equivalents. For purposes of
these calculations, debt is measured using swapped foreign currency
rates, consistent with the covenant calculation requirements of our
subsidiary debt agreements.

NPS – Net promoter score.

OCF Margin – Calculated by dividing OCF by total revenue for the
applicable period.

Revenue Generating Unit ("RGU") – RGU is separately a
basic video subscriber, enhanced video subscriber, DTH subscriber,
internet subscriber or telephony subscriber. A home, residential
multiple dwelling unit, or commercial unit may contain one or more RGUs.
For example, if a residential customer in Chile subscribed to our
enhanced video service, fixed-line telephony service and broadband
internet service, the customer would constitute three RGUs. Total RGUs
is the sum of basic video, enhanced video, DTH, internet and telephony
subscribers. RGUs generally are counted on a unique premises basis such
that a given premises does not count as more than one RGU for any given
service. On the other hand, if an individual receives one of our
services in two premises (e.g., a primary home and a vacation home),
that individual will count as two RGUs for that service. Each bundled
cable, internet or telephony service is counted as a separate RGU
regardless of the nature of any bundling discount or promotion.
Non-paying subscribers are counted as subscribers during their free
promotional service period. Some of these subscribers may choose to
disconnect after their free service period. Services offered without
charge on a long-term basis (e.g., VIP subscribers or free service to
employees) generally are not counted as RGUs. We do not include
subscriptions to mobile services in our externally reported RGU counts.
In this regard, our RGU counts exclude our separately reported postpaid
and prepaid mobile subscribers.

SOHO – Small office/home office subscribers.

Telephony Subscriber – A home, residential multiple dwelling unit
or commercial unit that receives voice services over our networks, or
that we service through a partner network. Telephony subscribers exclude
mobile telephony subscribers.

Two-way Homes Passed – Homes passed by those sections of our
networks that are technologically capable of providing two-way services,
including video, internet and telephony services.

Additional General Notes

Most of our broadband communications subsidiaries provide telephony,
broadband internet, data, video or other B2B services. Certain of our
B2B service revenue is derived from SOHO subscribers that pay a premium
price to receive enhanced service levels along with video, internet or
telephony services that are the same or similar to the mass marketed
products offered to our residential subscribers. All mass marketed
products provided to SOHOs, whether or not accompanied by enhanced
service levels and/or premium prices, are included in the respective RGU
and customer counts of our broadband communications operations, with
only those services provided at premium prices considered to be “SOHO
RGUs” or “SOHO customers.” To the extent our existing customers upgrade
from a residential product offering to a SOHO product offering, the
number of SOHO RGUs or SOHO customers will increase, but there is no
impact to our total RGU or customer counts. Due to system limitations,
SOHO customers of C&W are not included in our respective RGU and
customer counts as of December 31, 2017. With the exception of our B2B
SOHO subscribers, we generally do not count customers of B2B services as
customers or RGUs for external reporting purposes.

Certain of our residential and commercial RGUs are counted on an EBU
basis, including residential multiple dwelling units and commercial
establishments, such as bars, hotels, and hospitals, in Chile and Puerto
Rico. Our EBUs are generally calculated by dividing the bulk price
charged to accounts in an area by the most prevalent price charged to
non-bulk residential customers in that market for the comparable tier of
service. As such, we may experience variances in our EBU counts solely
as a result of changes in rates.

While we take appropriate steps to ensure that subscriber statistics are
presented on a consistent and accurate basis at any given balance sheet
date, the variability from country to country in (i) the nature and
pricing of products and services, (ii) the distribution platform, (iii)
billing systems, (iv) bad debt collection experience and (v) other
factors add complexity to the subscriber counting process. We
periodically review our subscriber counting policies and underlying
systems to improve the accuracy and consistency of the data reported on
a prospective basis. Accordingly, we may from time to time make
appropriate adjustments to our subscriber statistics based on those
reviews.

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